Huge growth: Hungarian real estate market takes off in January

The Hungarian real estate market started the year actively, with turnover 43% higher than a year earlier. Meanwhile, the mortgage loan amount showed an even more dynamic growth of 80%, according to real estate agency Duna House.

Duna House’s estimate of 8354 transactions in January indicates an increase of 6% compared to December and 43% compared to January 2023, Üzletem.hu reports.

The active start to the year can be explained by the postponement of transactions from last year and the deliberate preparation of transactions for January, the sales generated by the new, expanding home purchase incentives and the rising confidence due to the declining interest rate environment.

According to Duna House, both home buyers and sellers can expect an increasing real estate market in the first quarter, which may be further strengthened by the declining interest rate trajectory and the availability of loan rates below 6%.

According to domestic data from Credipass, the Duna House Group’s international financial brand, the credit market continued to strengthen in January after an active year-end. Credipass estimates a contracted volume of HUF 73.5 billion in residential mortgage loans for the first month of the year, an increase of 80% year-on-year.

In January this year, the impact of the renewed home purchase subsidies on demand is clearly being felt. The Duna House Demand Index (Keresletindex) almost doubled compared to the end of last year, rising from 45 to 87.